meed-logo

line1 line2 line3
SIGN IN / REGISTER

Abu Dhabi bullish on green hydrogen

31 October 2024

 

Abu Dhabi is looking at three green hydrogen technology tracks as the UAE capital pushes ahead with an ambitious plan to become a global clean hydrogen production hub and capture up to 5% of global demand by 2033.

"The first track is ammonia, the second is liquid hydrogen and the third track is liquid hydrogen organic carriers," Mohammad Abdelqader El-Ramahi, chief green hydrogen officer at Abu Dhabi Future Energy Company (Masdar), told MEED during the inauguration of steelmaker Emsteel's pilot green hydrogen project in Abu Dhabi on 28 October.

"We plan to transport our hydrogen products in the shape and form that they are going to be used [by offtakers]," he adds.

On behalf of Abu Dhabi Inc, Masdar is mandated to develop green hydrogen projects within the boundaries of the emirate, according to Abu Dhabi's low-carbon hydrogen framework developed by the energy department.

It will have a majority share in all green hydrogen projects developed in Abu Dhabi, in addition to developing renewable energy – or green electrons – required to produce about 1 million tonnes of green hydrogen within a decade. 

The same law, which took effect at the beginning of the year, designates Abu Dhabi National Oil Company (Adnoc) as a co-investor in low-carbon hydrogen generated from fossil fuels with carbon capture, utilisation and storage. 

Masdar has already signed preliminary agreements with some of the biggest energy firms and offtakers, as well as with potential investors and developers of projects that will be set up in the so-called hydrogen valleys that are planned in Ruwais and Khalifa Economic Zones Abu Dhabi (Kezad).

Read: Firm to build $272m UAE hydrogen equipment plant

Abu Dhabi envisages different low-carbon hydrogen production technologies to be collocated in these valleys to drive system-wide cost optimisation, including sharing infrastructure and facilities.

"Abu Dhabi and Masdar welcome strategic long-term partnerships and foreign direct investments by major players in the energy transition sectors … that bring the best value to enable the lowest levelised cost of hydrogen," says El-Ramahi.

"We also welcome co-investors and technology providers that can participate in consortiums to ensure reliability, business continuity and the lowest levelised cost of hydrogen or ammonia."

So far, the list of Masdar's potential green hydrogen partners includes Ireland-headquartered Linde; France's TotalEnergies; the UK's BP; Austria's Verbund; and Japan's Mitsui, Osaka Gas, Mitsubishi Chemical, Inpex and Toyo Gas.

"These projects will be developed via public-private partnerships. We encourage these long-term partnerships to promote low-carbon hydrogen in Abu Dhabi on a macroeconomic level, which will also open doors for us to invest internationally, because our mandate covers not only Abu Dhabi but globally."

El-Ramahi says Masdar's ambition aims to leverage its existing footprint and legacy in developing renewable energy globally to "explore new frontiers, and there is not a better chance in such exploration than these long-term partnerships based on mutual benefits and reciprocity".

Masdar is understood to have invested over $20bn in about 30GW of renewable energy capacity in 40 countries to date and aims to reach a gross capacity of 100GW by 2030.

Nascent sector

El-Ramahi is aware of the challenges plaguing the nascent industry. Few projects have reached financial investment decisions – either in the Middle East and North Africa region or globally – even though it is three or four years since the first megaprojects targeting demand centres in Asia and Europe were announced.

The average gestation period of these projects is at least four years and the onus will be on Masdar to figure out a way to shorten this.

"We need to be rational from the sector-readiness perspective. Readiness to develop such capacities, supply chain, logistics, technology, robustness, business continuity and reliability [takes time]. This sector is nascent … at the beginning of the launch of this sector a couple of years ago, people rode the wave and overpromised," El-Ramahi says.

"Now, with an understanding of the reality on the ground, many people are pulling away, which sometimes resonates negatively with decision-makers, but green hydrogen is real and low-carbon hydrogen is the future."

The executive is adamant that green hydrogen is the most important driver and enabler of net zero and decarbonisation, adding: "Very few people know that electricification alone can address no more than 30% of our decarbonisation [needs], even if we install all sorts of renewable sources."

Inevitable future fuel

Describing green hydrogen as the "inevitable future fuel", Masdar's strong Abu Dhabi government backing will be key to executing its mandate, notwithstanding potential rivalries with its GCC peers – particularly Oman and Saudi Arabia – and Egypt and Morocco further afield.

"History is made by achievements, not by promises," El-Ramahi says. "We have already overachieved … proving to the world that we can make commercial projects happen on the ground, and Abu Dhabi has always been a pioneer and first-mover in the energy sector."

Abu Dhabi intends to replicate its success in the energy sector's previous four waves – oil and gas in the 1960s, liquefied natural gas and anti-flaring in the 1970s, renewable energy in the 2000s, and nuclear energy in the 2020s – in the sector's fifth wave comprising low-carbon hydrogen.   

"We have made very rational steps in the past, our strategy does not endorse merely pouring money [into projects] or hiding subsidies … we don’t do that."

Build it and they will come

Given an extraordinary political will, Masdar and Abu Dhabi look set to develop or acquire what it takes to realise the ambition of becoming a global green hydrogen hub.

"We are working with the Industry & Advanced Technology Ministry to attract manufacturing companies and technology providers here in Abu Dhabi. This is in line with the government's decision, made over a decade ago, to transform into a knowledge-based economy, and we have been developing human capacity and attracting technology providers since then.

"It's not about putting money on the table – or under the table – in the form of subsidies … we do business realistically and transparently, and we want to compete against our own achievements on the ground," El-Ramahi concludes.

Related read: Decarbonising steel is hard to resist

Photo: Pixabay

https://image.digitalinsightresearch.in/uploads/NewsArticle/12820206/main.jpg
Jennifer Aguinaldo

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Jordan starts international stadium construction works

    18 June 2026

    Register for MEED’s 14-day trial access 

    Jordan has started preliminary excavation and site preparation work at its Al-Hussein Bin Abdullah II International Stadium, located east of the capital city of Amman.

    The project is part of the first phase of the Amra City development master plan.

    The development is being implemented by Jordan Cities & Facilities Development Company, a Jordan Investment Fund-owned company.

    The main works are expected to begin early next year, with the stadium slated for completion in 2029.

    The project will cover an area of about 1 million square metres and the stadium will have a capacity of 50,000 spectators.

    The stadium is being built within the Amra City development, which is located about 40 kilometres (km) from downtown Amman and 35km from Zarqa City and Queen Alia International airport.

    The project forms part of Jordan's Economic Modernisation Vision (EMV) 2023-25.

    The EMV – Amman’s flagship reform programme – aims to increase real income per capita by an average of 3% annually, create 1 million jobs, and more than double the country’s GDP over the next decade.

    The strategy envisages a leading role for the private sector, which is expected to account for 73% of the estimated $58.8bn investment required.

    To achieve these targets, a substantial pipeline of public-private partnership (PPP) projects is planned in sectors including water desalination, school construction, clean energy, green hydrogen, transport and road infrastructure.

    Last year, the PPP unit at the Investment Ministry said it was targeting seven key PPP projects in 2025.

    READ THE JUNE 2026 MEED BUSINESS REVIEW – click here to view PDF

    GCC looks beyond the Strait; Iraq’s reform window narrows as fiscal assumptions shatter; MEED Top 100 companies.

    Distributed to senior decision-makers in the region and around the world, the June 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17325757/main.png
    Yasir Iqbal
  • Chinese firms win $506m Saudi housing project deals

    18 June 2026

    Register for MEED’s 14-day trial access 

    Saudi Arabia’s Municipalities & Housing Ministry has awarded contracts worth over SR1.9bn ($506m) to Chinese contractors for two residential developments in the kingdom.

    The first contract has been awarded to China Architectural Construction Corporation for the construction of 2,010 housing units at the Al-Ruba residential project in Riyadh. The contract value is SR875m ($233m).

    The other contract has been awarded to China State Construction Engineering Corporation for the Al-Rasha Al-Faisaliah residential project in Dammam. The project comprises 2,426 housing units, and the contract value is over SR1bn ($266m).

    The contracts were announced during the official visit of Majed Al-Hogail, Saudi Municipalities & Housing Minister, to China, where he also signed six memorandums of understanding (MoUs) between Saudi and Chinese firms. The MoUs aim to accelerate housing development, localise advanced construction technologies and enhance public-private sector collaboration.

    MEED reported in 2020 that Riyadh planned to oversee the development of more than 1 million homes by 2025 to meet growing demand in the kingdom.

    By 2030, the Saudi capital aims to more than double its population, from 7-8 million to 15-20 million, and to become one of the 10 wealthiest cities in the world.

    READ THE JUNE 2026 MEED BUSINESS REVIEW – click here to view PDF

    GCC looks beyond the Strait; Iraq’s reform window narrows as fiscal assumptions shatter; MEED Top 100 companies.

    Distributed to senior decision-makers in the region and around the world, the June 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17322994/main.png
    Yasir Iqbal
  • Diriyah awards $727m Waldorf Astoria superblock deal

    17 June 2026

     

    Saudi gigaproject developer Diriyah Company has awarded a SR2.7bn ($727m) contract for the main construction works on the development’s Waldorf Astoria superblock.

    The contract was awarded to the joint venture of Hassan Allam Construction Saudi and UCC Saudi, the local branch of Qatar’s Urbacon Holding.

    The Waldorf Astoria superblock is a mixed-use development comprising a Waldorf Astoria hotel, Waldorf Astoria-branded residences, commercial and residential facilities, and office space.

    The Waldorf Astoria hotel will feature 200 keys, while the residential component will comprise 47 branded residences.

    The project is located on the Grand Boulevard South and Northern Arterial Road in the Boulevard Northwestern district at Diriyah Gate 2. 

    Diriyah Company tendered the contract in November last year, with submissions due in January, as MEED reported.

    Diriyah Company Group CEO Jerry Inzerillo said: “We are delighted to announce this latest major construction contract for the Waldorf Astoria superblock as we continue to progress at pace across the Diriyah development area. The Waldorf Astoria will be a world-class addition to our growing portfolio of globally renowned hospitality brands, further strengthening Diriyah’s appeal as a globally significant destination that offers world-class hospitality and lifestyle experiences.

    “Together with our partners, we look forward to delivering another landmark development that supports the kingdom’s Vision 2030 ambitions and contributes to the continued growth and success of Diriyah.”

    Hassan Allam, chairman and CEO of Hassan Allam Holding, said: “We are proud to support the development of one of the kingdom’s most ambitious and transformative destinations and to continue our partnership with Diriyah Company in bringing its vision to life.

    “Drawing on more than 90 years of experience across the Mena region, we remain committed to delivering the highest standards of quality and excellence on landmark projects that are helping shape the kingdom’s future.”

    Ramez Al-Khayyat, UCC Holding president and group CEO, said: “Being awarded this contract by Diriyah Company marks another important milestone in our growing partnership and reinforces our shared commitment to delivering world-class developments across the kingdom. This project builds on our ongoing collaboration in Diriyah, including the delivery of four luxury hotels and the Royal Diriyah Equestrian and Polo Club in Wadi Safar.

    “We value the opportunity to contribute once again to one of Saudi Arabia’s most ambitious and prestigious urban development destinations, supporting the vision of creating a world-class cultural, hospitality and lifestyle hub.”

    The latest award follows Diriyah Company’s award of an estimated SR730m ($195m) construction contract for civic quarter buildings within the Diriyah development to local contractor Al-Rashid Trading & Contracting Company (RTCC).

    In April, Diriyah announced a SR1.84bn ($490m) construction contract to build the Saudi Arabia Museum of Contemporary Art (SAMoCA) within the Diriyah development. The contract was awarded to a consortium of Egyptian contractor Hassan Allam Construction Saudi and Saudi Arabia’s Albawani.

    In March, Diriyah Company awarded an estimated SR2.5bn ($666m) contract to build the Pendry superblock in the DG2 area.

    The Pendry superblock includes the construction of the Pendry Hotel alongside residential and commercial assets. The package will cover 75,365 square metres and is located in the northwestern district of the DG2 area.

    The previous month, Diriyah Company also awarded a SR717m ($192m) contract for the construction of the One Hotel, located in the Diriyah Two area of the masterplan, with a gross floor area of more than 31,000 sq m.

    The Diriyah masterplan envisages the city as a cultural and lifestyle tourism destination. Located northwest of Riyadh’s city centre, it will cover 14 square kilometres and combine 300 years of history, culture and heritage with hospitality facilities.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17287718/main.jpg
    Yasir Iqbal
  • AHS Properties acquires Shangri-La hotel for $300m

    17 June 2026

    Dubai-based real estate developer AHS Properties has announced the acquisition of the Shangri-La hotel for AED1.1bn ($300m), marking one of the largest single-asset real estate transactions in recent years.

    AHS Properties acquired the hotel from local firm Mismak Asset Management.

    The Shangri-La Hotel is a 43-storey, 200-metre tower located on Sheikh Zayed Road. Completed in 2003, it was among the first five-star hotels to open along the corridor.

    The acquisition expands AHS Properties’ portfolio, which includes AHS Tower, a Grade A commercial development on Sheikh Zayed Road, and AHS City, the company’s master-planned mixed-use community on the same corridor.

    In a statement, AHS Properties said that AHS Tower, AHS City and the Shangri-La hotel form a strategic “vertical corridor” platform, representing a significant portion of the company’s AED50bn development pipeline through the end of 2026.

    “The transaction reflects AHS Properties’ strategy of deploying capital into high-quality, supply-constrained assets,” the statement added.

    According to the Dubai Land Department, Dubai’s real estate sector recorded AED252bn in transactions in Q1 2026.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17310101/main.jpg
    Yasir Iqbal
  • UAE moves to clear the path for recovery

    17 June 2026

    Commentary
    Colin Foreman
    Editor

    More than three months after the conflict began to disrupt business across the Gulf, the UAE is moving to resolve the technical challenges that the economy faces as it shifts towards recovery.

    The insurance gap has been a key obstacle to the recovery of aviation and tourism. Several countries continue to maintain advisories against travel to the Gulf, making it difficult or impossible for visitors to obtain conventional cover for trips to or through the region. The concern is twofold: one, becoming stranded should hostilities resume, and two, not being able to secure medical insurance. Both Emirates and Etihad have now moved to address that directly, offering insurance to passengers flying to or through their respective home hubs. The Etihad scheme, backed by DCT Abu Dhabi and underwritten by Daman, will run from July to December and covers eligible visitors for up to 15 days.

    The second area of concern is real estate. Anecdotally, buyers in sectors economically exposed to the conflict have found it increasingly difficult to obtain mortgage financing, a problem that has become especially acute at the point of handover. The recently signed partnership between Dubai Holding Real Estate and Commercial Bank of Dubai is designed to ease that pressure. The programme opens financing from the 30% construction stage once buyers have met a 50% payment threshold, giving purchasers earlier visibility of their borrowing capacity and reducing uncertainty during the off-plan purchase process.

    Taken together, the two initiatives show that the UAE is proactively addressing the technical hurdles as and when they arise. As the recovery gathers momentum, more challenges will surface. The capacity and willingness to address them as they emerge will be crucial to a meaningful recovery.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17306586/main.jpg
    Colin Foreman